Odyssey Re Holdings Corp. Announces Exposure to Enron of $19.5 Million After Tax and Revises September 11 Terrorist Attack Loss Estimate

Business Wire, Jan 14, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 14, 2002

Odyssey Re Holdings Corp. (NYSE & TSE:ORH) announced today it would recognize additional provisions in its 4th quarter result of $19,500,000 after tax, reflecting net losses arising from the Enron bankruptcy, and also a strengthening of provisions for losses arising from the terrorist attack of September 11th.

Pre tax provisions for Enron, net of reinsurance, will be $15,000,000, arising from Surety, Directors and Officers Liability and other Professional Liability coverages. OdysseyRe has no exposure to Enron through its investment portfolio.

Additional pre tax provisions for the terrorist attack will also be $15,000,000, net of reinsurance. On a gross basis, the additional provisions amount to less than 10% of OdysseyRe's previously advised estimate, and are intended to ensure that all costs of the attack have been accounted for in 2001.

The Company advised that it has not utilized its Aggregate Excess of Loss Retrocessional coverage for any losses from the terrorist attack or Enron.

OdysseyRe is a leading U.S.-based underwriter of property and casualty reinsurance on a worldwide basis, with principal locations in the United States, London, Paris, Singapore, Latin America and Toronto. OdysseyRe is rated "A" by A.M. Best and "A-" by Standard & Poor's.

Certain statements contained herein may constitute forward-looking statements and are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: the occurrence of catastrophic events with a frequency or severity exceeding the Company's estimates; the lowering or loss of one of the Company's financial or claims-paying ratings, including those of the Company's subsidiaries; changes in interest rates; changes in premium volumes; increased competition; regulatory and legislative changes; changes in loss payment patterns; changes in estimated overall adequacy of loss and LAE reserves; changes in key management personnel; changes in general market or economic conditions; and other factors which are described in the Company's filings with the Securities and Exchange Commission.